Emerging-market stocks declined after a seven-week rally sent valuations to the most expensive level since September. Technology shares slumped before earnings this week from companies including Samsung Electronics Co.
Carson Block, the short seller and analyst who sparked a 74 percent drop in Sino-Forest Corp. shares when he said the company misstated its business, is finding it harder to attract believers to his latest research.
Chinese small and mid-size stocks are attractive as monetary authorities may cut interest rates once or twice more this year, said David Semple, who oversees $35 billion in assets at Van Eck Associates Corp.
U.S.-listed Chinese stocks fell for a second day, led by Baidu Inc. and Soufun Holdings Ltd, on concern policy makers won’t do enough to blunt an economic slump as the government keeps restrictions on the housing market.
European banks, Japanese carmakers, Hong Kong developers and Russian oil producers have gotten so cheap that stock investors from Harris Associates LP’s David Herro to Aberdeen Asset Management’s Kathy Xu are buying.
China Eastern Airlines Corp., the nation’s second-largest carrier by passenger numbers, fell to a five-month low in New York as larger competitor Air China Ltd. said passenger growth may slow this year and on a report that the government may raise jet fuel prices for April.
China accelerated the opening of its capital markets by more than doubling the amount foreigners can invest in stocks, bonds and bank deposits as the government shifts its growth model to domestic consumption from exports.